The conversion price (Swedish: konverteringskurs) is the price per share at which a convertible can be exchanged for new shares. This sets the exchange ratio: a loan amount of SEK 100,000 and a conversion price of SEK 50 give 2,000 shares. It is set in the terms and may be recalculated, for example after a split or a bonus issue.
On conversion, the number of shares increases, diluting existing owners (dilution). The new shares are registered with Bolagsverket and entered in the share ledger.
A convertible is a loan that can be exchanged for shares in the company.
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Conversion of convertibles means a convertible debt instrument is exchanged for new shares in the company.
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Dilution means existing owners' stake in the company decreases when new shares are issued.
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The subscription price is the price per share to be paid for new shares in a new share issue.
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